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Home My WebLink About10/07/92CITY OF ~./.~ ~ ATER BOARD Mark Salvaggio, Chairman Ken Pete r son~ Vice-Chairman Conni Srunni SPECIAL MEETING WEDNESDAY, OCTOBER 7, 1992 WATER RESOURCES CONFERENCE ROOM 1000 BUENA VISTA ROAD 5:15 P.M. Call Meeting to Order. Roll Call - Board Members. 1) Approve the corrected minutes for the May 5, 1992 Water Board meeting and approve the minutes of the Special meeting held August 25, 1992. 2) Possible plan for the retention of State Project water within Kern County. FOR BOARD DISCUSSION. 3) Response from Assemblyman Trice Harvey regarding the status of SB 959 (Water Tax). FOR BOARD INFORMATION. 4) Agreement to construct an interconnection with California Water Service Company on Stine Road just south of Panama Lane. FOR BOARD DISCUSSION AND RECOMMENDATION TO CITY COUNCIL. 5) Domestic Water System Operations Agreement with California Water Service Company, FOR BOARD ACTION AND RECOMMENDATION TO CITY COUNCIL. 6) Annexation to City Domestic Water Service Area.' FOR BOARD ACTION AND RECOMMlgNDATION TO crrY COUNCIL. 7) Set date and time of next Water Board Meeting. FOR BOARD DISCUSSION. 8) Adjournment. PAUL DOW, MANAGER POSTED: October 6, 1992 1000 BUENA VISTA ROAD · BAKERSFIELD, CALIFORNIA 93311 * (805) 326-3715 CORRECTED MINUTES WATER BOARD MEETING - CITY OF .BAKERSFIELD TUESDAY, MAY 5, 1992 5:15 P.M. The meeting was called to order by Boardmember Salvaggio at 5:15 P.M. in the Water Resources Conference Room. Present: Salvaggio, Chairman; Peterson, Vice-Chairman; Brunni A motion was made by Boardmember Brunni to approve the minutes of meeting held November 7, 1991. Motion passed. Public Statements were made as follows: 1. Mr. Tom Clark of the Kern County Water Agency made two presentations before the Board. The first was an update on the ID4 separation. The second was regarding Kern County Water Agency's purchase of Tenneco (McClung Ranch) lands for groundwater recharge. -a. Several meetings have been held regarding the ID4 separation in an effort to effect a workable solution to the problem of establishing an elected Board. After much discussion, Mr. Dow recommended that the Board approve the Kern County Water Agency's concept that was presented and appoint 3 members to meet with whatever committee members they choose (Boardmember Salvaggio recommended Mr. Balch, Mr. Matthews and Mr. Radon as representatives of the policy making portion of the committee) and try to work out the details and report back to the Water Board. A motion for approval was made by Boardmember Peterson. Motion passed. b. Mr. Clark also informed the Board that the Kern County Water Agency proposed to purchase 2300 acres known as the McClung Ranch properties from Tenneco. This property is near the Ashe Water system and Mr. Clark stated that the Kern County Water Agency will not develop that portion of the property where it will adversely affect the City's system. Questions of concern for the City were use of the Kern River Canal, City Planning of the Kern River corridor and the City's position as a Kern River Interest. 2. Mr. George Nickel made a presentation before the Board regarding his proposed water plan for the de-annexed area between Olcese Water District and ID4. It was recommended by Mr. Dow that Mr. Nickel provide staff with cost figures and commitments of participation from developers in order to continue further discussion and possible participation in this project. At the recommendation of staff Items 9, 4, 5 and 7 were moved up to this position in the above written order. . Mr. Bogart presented.before the Board the Cawelo Water District letter regarding future operation and control of the Cross Valley Canal. A meeting is scheduled for May 27, 1992 to discuss the future of the Cross Valley Canal and the benefits/non-benefits received by the participants. Mr. Bogart suggested that City staff be in attendance at this meeting and to report back to the Board if anything of concern for the City transpires. The agreement to construct an interconnection with California Water Service at Hageman and Coffee Road was brought before the Board by Mr. Core. City is proposing an interconnection with California Water Service Company at Coffee Road so that water may be switched back and forth under emergency conditions only. This interconnection will help alleviate any water shortage in this area due to disasters or water quality problems, but ~may be switched back and forth under emergency conditions only. This interconnection will help alleviate any water shortage in this area due to disasters or water quality problems, but will not be detrimental to either the City or California Water Service Company's customers. Boardmember Peterson made a motion for approval and recommends the same to City Council. Motion passed. The proposed License Agreement with California Water Service Company for installation of overflow and drain pipe on Beardsley Canal Lateral 1-1-0 ("1" Ditch) was presented before the Board by Mr. Core. California water Service Company has acquired property adjacent to the Ditch to install a potable water storage tank and are requesting. permission to put the drain and overflow pipe from that water storage facility and drain it into the canal when needed. This will not cause any water quality problems or disrupt the operation of the Ditch. A motion was made by Boardmember Peterson to recommend approval by the City Council. Motion passed. Mr. Core presented befOre the Board the report from the Evaluation Team °n selection of Operations and Maintenance contractor for City Domestic Water System. The recommendation,of the Evaluation Team was to award the contract to the California Water Service Company. An additional recommendation by the Water Resources staff is an evaluation of the new California Water Service Company contract within three months and take appropriate action on the issuance of a new contract. It was recommended by Mr. Dow that Board authorize staff to work-out an agreement with California Water Service Company that matches what they proposed which will be sent to City Council for approval.. A motion to this effect was made by Boardmember Salvaggio. Motion passed. The meeting adjourned at 6:50 P.M. to Closed Session pursuant to Government Code Section 54956.9(b)(1) regarding potential litigation~ Meeting re-opened to the public at 7:45 P.M. The Water Contingency Plan was presented before the Board by Mr. Core. After some discussion, a motion was made by Boardmember Salvaggio for the City of Bakersfield to adopt the Water Shortage Contingency Plan and place the Plan on file at the City Water Resources Office. Motion passed. Mr. Bogart brought before the Board the 1992-1993 Water Price and Sand Sale Schedules for Agricultural and Domestic Divisions. It was noted that the Agriculture water rates have been adjusted for inflation in 1992 and the proposed miscellaneous water rates reflect the continued dry water supply conditions available this year. The Domestic Water rates are proposed to be adjusted upward by approximately 2.5%, beginning July 1, 1992. The increase would be the first rate adjustment since 1983 and apply primarily to the readiness-to-serve charge. This increase would result in the average residential customer receiving an increased water bill of approximately $.52 per month. The Board reviewed the schedules and recommended that the City Manager approve and execute the Executive Orders setting the water rates. Mr. Bogart brought before the Board the contract from Dodd Investigations and Security, Inc. requesting a cost of living rate increase to $23.40 per hour. This is the first rate increase since 1979 when Mr. Dodd initially entered into a contract with the City for security/Patrol Services. A motion was made by Boardmember Salvaggio to approve a cost of living rate increase in accordance with the "All Commodities Index", and to require insurance coverage up to a million dollars. Consideration of a possible adjustment to the hourly rate would be given for the added coverage for "Broad Form General Liability Insurance Coverage" if needed. City Attorney Lunardini suggested the additional insurance premium should not exceed $500 annually. Motion passed. A request from Loron Hodge of the Water Association for a contribution to the 1992 Water Awareness Campaign was presented by Mr. Bogart. A motion was made by Boardmember Salvaggion to authorize a contribution of $500 from Ag Water and 2 request for the Board to adopt this as the official policy, unless they felt it should be reviewed further. A motion was made by Boardmember Salvaggio to adopt this Water Policy and prepare a report to the City Council for approval. Motion passed. Mr. Dow presented to the Board, for information only, the reassignment of various Mainline Extension contracts in the amount of $139,136.76. The next meeting of the Water Board was set for Tuesday, June 9, 1992 at 4:30 P.M. A motion to adjourn was made by Boardmember Peterson at 8:30 P.M. Motion passed. Mark Salvaggio, Chairman City of Bakersfield Water Board Sharon Robison, Secretary City of Bakersfield Water Board 3 SPECIAL MEETING WATER BOARD - CITY OF BAKERSFIELD TUESDAY, AUGUST 25, 1992 4:30 P.M. The meeting was called to order by Boardmember Salvaggio at 4:35 p.m. in the Water Resources Conference Room. Present: Salvaggio, Chairman; Brunni Absent: Peterson (Vice-Chairman) Boardmember Brunni had a question regarding the increase of water rates. These rate increases were brought before the Board at the May 5, 1992 meeting but were inadvertently left out of the approved minutes. Mr Dow indicated this item will be brought back at the next Water Board meeting. A motion was made by Boardmember Brunni to approve the minutes of the June 9, 1992. meeting. Item 2 was moved to the end of the agenda. A letter f~om Olcese Water District dated August 17, 1992 requesting assistance in mei~ting the water needs of lands in the District was brought before the Board by Mr. Bogart. Due to the 6-year drought the water wells that were drilled by Olcese and conveyed to the City were not producing as much as originally estimated, because of this Olcese Water District cannot generate enough pumping capacity to meet its contractural obligations to the City, Buena Vista Water Storage District and the Olcese District. Mr. John Gregory, President of Olcese Water District is asking the City for assistance in addressing this problem. A motion was made by Boardmember Salvaggio for the City to enter into an interim water sale agreement with Olcese Water District. Motion passed. Mr. Bogart presented before the Board a request by Vaughn Water Company to enter into a long-term arrangement to receive water to augment their existing supply to City tracts, especially the new Polo Grounds area. There is already a temporary agreement between the City and Vaughn Water Company at an interconnection with the City's system, but this was for emergency situations only to provide back-up to each other. In response, City staff prepared a draft letter stating it is not able or willing to get into a long-term agreement at this time, and is asking Board's approval to send the letter to Vaughn Water Company. Boardmember Brunni made a motion to authorize staff to send the letter. Motion passed. Mr. Bogart and Mr. Core presented before thee Board the City's position on the policy for dedication of groundwater rights to the City's water service area as agricultural lands become urbanized. As lands develop from Agricultural to urban users, it is important that the groundwater remain dedicated to those areas being serviced. The staff would like to include, as a requirement for the development of tracts, language that would dedicate those groundwater rights to service the overlying lands within the City's service area. Following discussion, staff was directed to work with the City Attorney on development of policy on procurement of groundwater fights of developed lands. Mr. Core presented to the Board, for information only, the reassignment of various Mainline Extension contracts in the amount of $169,834.43. The update on governance for Improvement District No. 4 was brought before the Board by Mr. Dow, Mr. Bogart and Mr. Scott Slater. Attached to the agenda packet is a summary of discussions which include all- of the things that have been discussed to date. Mr. Slater felt that there was a consensus of purpose, and to some extent a consensus on most of the issues. Boardmember Brunni had several questions pertaining to the summary directed staff to continue discussions with the Kern County Water Agency and Kern County staff and continue to update the Board as discussions progressed. The meeting adjourned at 5:14 P.M. Mark Salvaggio, Chairman City of Bakersfield Water Board Sharon Robison, Secretary City of Bakersfield Water Board -2- 10/7/92 IMPROVEMENT DISTRICT #4 CONSIDERATION OF PURCHASE OF ADDITIONAL SWP ENTITLEMENT ID4 WATER SUPPLY NEEDS o Current demand is about 105,000 af comprised of ground water pumping and treatment plant production. About 3,500 acres, when developed, would increase future demand by about 9,000 af for a total maximum demand estimated to be about 114,000 al/year. o DWR estimates that SWP delivery capability during a repeat of the 1928-34 seven year drought, with present facilities/Delta standards and SWP demands of 3.76 MAF is as follows: SWP 1928-34 Entitlement Availability M&I 77,000 af 51,560 af (64%) Ag 10,276 af 5,240 af (51%) Total 87,276 af 56,800 af (65%) Shortage of original ID4 SWP entitlement 77,000 - 56,800 = 20,200 af o DWR estimates of SWP entitlement availability are over-stated because additional Delta export restrictions are likely to be imposed for one or more of the following reasons: winter run salmon Delta smelt additional threatened and endangered species listings revised SWRCB Delta water quality standards Federal EPA intrusion into Delta decisions LOS BANOS GRANDES - ALTERNATIVE TO PURCHASE OF ADDITIONAL SWP ENTITLEMENT o Based on DWR data, LBG will cost $19.50/af of entitlement if all LBG costs are paid by all SWP contractors. The estimated average cost of water actually received from LBG is as follows: 70 Year Avg Dry Year Avg Deliveries Deliveries 1922-91 1928-34 M&I $525/af (3.7% of 77 TAF) $267/af (7.3 % of 77 TAF) Ag $267/af (7.3% of 10 TAF) $267/af (7.3% of 10 TAF) Total $354/af (5.0% of 87 TAF) $268/af (7.3% of 87 TAF) o In order to achieve the above costs, DWR assumes permits are obtained to operate the four additional Delta pumps and that the following facilities are in place, however, the cost of such facilities are not included in the above LBG costs: - Through Delta facilities - KWB facilities o If ID4 does not opt out of LBG, all LBG costs will be automatically be paid via ZOB 7 assessments. Payments would begin prior to any water being delivered from LBG, and when such deliveries might begin is highly uncertain. PURCHASE OF ADDITIONAL SWP ENTITLEMENT - ALTERNATIVE TO LBG o Assuming a block of 40,® af $WP Ag entitlement is .transferred to ID4 from Belridge (25,000) and Lost Hills (15,000) for a fixed price of $120/af/yr plus SWP power, and considering the firmness of Ag SWP entitlement without participation in LBG vs LBG firmness for ID4, delivered water costs for Ag entitlement compare with LBG water as follows: 1928-34 1928-34 SWP Ag Ent LBG Availability SWP Ag Availability for ID4 o Entitlement (51% of 40 TAF) (7.3 % of 87 TAF) 40,000af/yr 20,400af/yr 6,354af/yr Fixed Cost $120/af $235/af $268/af Variable Cost 14/af* 14/af* 14/af'* Total $134/af $249/af $282/af o In addition to being less costly than LBG, another advantage of purchasing existing SWP entitlement is that such a purchase would yield water now and in the future whereas it is not known for sure when water would be available from LBG. o If it were possible to assess ZOB 7 for both SWP and non-SWP Ag entitlement costs (40,000 af @ $120/af), in-lieu of participating in LBG, ZOB 7 would be increased as follows: Annual Annual ZOB 7 Annual ZOB 7 ZOB 7 AV Rate per Assessment per Cost $100 AV $100,000 AV Fixed Cost $4,800,000 0.048720 $48.72/yr Variable Cost 560,000* 0.005684* 5.68/yr* Total $5,360,000 0.021873 $54.50/yr * Note: SWP Variable charged only when water is delivered. Water for sale? Districts discuss plan to ~i~ tinan¢ially strap~od Kom ~rowor$, thirsty k^. smaU,r we~ side i~fl,ert ar* dt~ero~l~ close ~ ~. ~ ~ ~ ~ ~ ~ ... ~'s ~ ~," ~ T~ ~ ~ ~ ~ ~ ~~,~~ a~y,~t~~. . WA~R: ~es to L.A. seen as tem~r~ fix It's a ~ ~: ~ w~ ~ .., ~ ~" Selling water would keep' farmors afloat, tho¥ say ~y SUSAN TOWEfl~ - ~2~d ~ ~ ~ ~ ~ ~ "we ~ ~ ~d IL We w~ ~. V~y~ ~v~. ~ ~ ~t ~ ~ ~ overshadows nil o~ers, ~e one ~nt ~ ~ ~, We ~ ~. We ~ WATER: Exorbitant costS threaten to ruin some in west Kern, farmers say C4~nned h~mn E1 s~d. eo~on and vege~e er~. are bad and w~ n~ lend any n~ooey ~ ~ be a~owed ~ sell · potion ~ ~e~ Peo~e ask h~n why farmers bo~er ~ By 1~5 ~e econmny hsd changed dm- farmers ~ ~s area. alinc~iee of store wa~, latin on tAe west ft~de if water costs are so n~Ucatly for C~d~o~da fnrn~ers. "We geflern~y ~ there mu.~ be the Kern Coonty Water A~eflc~, wblch will "It wam't slways like tats," he said. sa~ had values threw many farmers Mnellvalfle, ptesidmt o~ Parsmom~t Farm. 'not allow the water to leave the e~mty. "And now we have so much lnves~d be~. In~ b~. Tbe problem mtdttpl~ed fo~ lng Co. Pa~amouflt abo has land in the ShaJu-n flgu]'m that if the farm can sell You don't )us~ walk away." west-~de farmers. W~efl soflM went out o~ I~rreflda Mesa Wat,*r D(a~rlet and abo has t]~ water allocated to part o~ its acreage, In 1091 when the farm owners IMu~ht b~ the Ix'oblem wot'sefled for ~ land that wOl never be [ar3ned because o~ form more efficiently on what's left. ture. It was bright for the west ,dde dese. t BetTendn Mesa Wate~ Distri~'s water "Everyone is in s~ne hm'dshfp at the "We'll he able to. ph~t be(ret t~em. lands tm'ned Into oases In the tare 1~08 ~ fo~ emm,.ple, was r/million th~ year. moment," he said. We'H I~e able to build · storage f&cfllty."' when water was bre~ht to them by the It has to be shared by the remaining Macrlvftine s~ld fro'eMro must fe~ to.. Col Farm employs about 20 people, hot newly co~st.,-uc~ Stats Wator l~'oJec~'o f~. ~f Cai Fm-m foes out of bo.~ness, fether and develop their water-banking durin~ barrel,ting seasoru employment Co~fm'nla Aquednc~ its ~0,(M0 bill woo]d be s~read mnOng OJe program ns well as work toward ~ eompifly's armual payroll is about F/00,0O0. tM abo~t J~X),~00, but tJ~t didn't mattor, fatLIt~:l off already has been spread among "Water conse~ation Is taking place "Our farm and others like ours are Returnf were high for pls~chlos and the refiners, mos~ intensively on the west f~de of the tmlMrtant to the Ke~n County economy," he grapes. They could even turn a profit on Shaken said that lenders know ~ valley," he said. Water officials seek to keep west-side farm supply in Kern Ways to avert selling resource putside COunty studied t2¥ ',~,,~_~,__t~r~.~'t~. to purchase mo, tl~an 50 percent of department, California Water Ser- ........ the countT's suppl.v for their vine- vice, North of'the River Municipal A ~ of urban water inter, yards, omlurds and annual crops. Water District, East Niles _C. ommv- ests in metropolitan Bakersfield The rest of the water goes to farms nit7 Services District and other hope to alter permanently the flow with acce~ to water wells and to water interests discus~ forming of state water through Kern County. the city of Bakersfield for municipal another dLqtrict out, de crt7 tlrntt~. . As. water is sold off by western use. ~' "we' could 'a~lopt a s~~' Kern. farmers,, these agencies are However, the price of annual ... that will take up some of the studytr~ ways to move it closer to crops -- such as potatoes and cotton costs ... the mst (of the costs) can Bakersfield, pos~bl¥ storing it un- -- has fallen and water prices have be offset by some of these other derground, selling it as drinking risen. Today, some west-side farm- plar~," Clark sa~d. . water, or running it through the em aren't able to make their state The other plans Clark sug~estad Kern Kiver for. summer splp~qhir~, water payments and are looidng to'~ include selling some west-s~de water · ~.~ The plan is to keep the water in unload some of their supply, to farmers who now use well water, '~ f~e count~; to replenish the area's It's likely they'll get a good Price to farmers who use federal water, '. diminishing groundwater supply for their water [mm agencies out- oF to. the city o~ Bakersfield for ' and to create a future water supply side Kern County, such as the Los recreational purposes. for thirst7 residents who are expec- Angeles Metropolitan Water District The fees llkel~ would be paid by .~ ted to move here in the nezt...two oF the cit~ o~.~ul~cisco. Kern. the l~nd0wners witJ~n the district decades. . Count7 water interest] will have to boundaries. ,' '.'We have a Chance to reverse be quite creative with their flnanc- Bob Lewb, of the Callfomta Wa- .t~ flow '~f water hem," said Tom lng in order to be competitive, tx' Service, su~ the. Idea of Clark, general manager of the Kern The question is, who is willing to keeping the water In Kern 'County. 'C~tmty Water Agency, which is pay for' water and save it fo~' the "E the co~t is reasonable, we spearheading the study. "We think people who aren't here yet? should proceed," Lewis said. a water-retention plan is very ira- Under the agencT bylaws, there. "Hem's a ball we can FUn with. Th~ portant for Kern Couflb/to review." are various 'fee-based distric~ in water is here' for us ... and we need · When the state water project was the county that pa), for the benefits it." built in the .earl), 1960s, farmers on of state wa%er. On Tuesday, officials ' Cai Water serves more than the west ~dde of Kern County a~ from the city of Bakersfield water $2,6~0 customers in Bakersfield. KERN COUNTY WATER AGENCY MEMORANDUM TO: KCWA Board of Directors' State Contract Committee FROM: Thomas N. Clark, General Manager . DATE: September 8, 1992 SUBJECT: Plan for Retention of State Water Project Entitlements in Kern County Recently Belridge Water Storage District and Lost Hills Water District have expressed a desire to explore transfer of a combined 40,000 acre-feet of State Water Project (SWP) entitlement water to buyers either within or outside of the county. The districts have determined that the entitlement is excess to their needs when a full supply is available from the SWP and is too expensive to grow annual crops during times of shortage. In addition to Belridge and Los Hills, Berrenda Mesa Water District and Wheeler Ridge-Maricopa Water Storage District have indicated an interest in transferring entitlement water. It is estimated that the total amount of SWP entitlement water available for transfer may ultimate- ly be in the range of 100,000 acre-feet to 200,000 acre-feet per year. The following factors head us to conclude that an all out effort must be'undertaken to retain this entitlement water for current and future water needs within Kern County: 1. Kern County will experience increased water shortage from the SWP and the Central Valley Project (CVP) in the future. 2. The Urban Bakersfield area will require additional water for two purposes: a. water to meet the 77,000 acre-feet demand of the Improvement District No. 4 project. b. water to meet the 2010 water demands of those urban areas outside of the existing boundaries of ID4. -'~ 3. Agricultural areas overlying the ground water basin require additional water to reduce ground water overdraft. In the early 1980s the long-term overdraft was estimated to be 250,000 acre-feet/year. When considering impending shortages of SWP and CVP water, the long-term overdraft will exceed 500.000 acre-feet/year. In each of the last six drought years, the overdraft has approached 1.0 million acre-feet per year. 4. Agricultural areas not overlying the ground water basin will require additional water t° meet water demands for permanent crops due to increasing SWP water shortages. Recreational water is needed to meet the needs of the Kern River Plan and the Buena Vista Aquatic Lakes. Given the above, the following draft plan is offered for discussion purposes. Draft SWP Retention Plan A. Offer to Sellers - This plan envisions permanent transfers of SWP entitlement from those districts desiring to sell such water and use of the entitlement for a variety of purposes within the county. While a selling price has not yet been asked by the selling districts, a reasonable approach for establishing the price may be as follows: I. The district be offered market value for the land from which the entitlement is to be trans- ferred and permanently fallowed. The purchased land may have some residual value for use · as mitigation land for other water supply projects. 2. The district be paid annually for district debt service~'O&M and administrative costs associated with the land. 3. The district be paid annually or relieved of all Agency charges for the entitlement water x transferred. 4. The selling price would be the sum of items 1,2, and 3 above. 2 ' "~ B. Buyers and Sources of Revenu~ - There are a number of uses and funding programs that could be quickly implemented for acquisition of transferred entitlement. Purchases may be made indMdually or in any number of combinations of the following uses: 1. Improvement District No. 4 - The ID4 project authorizes acquisition of 77,000 acre-feet of water to meet supplemental water needs in ID4. This M&I supply was supplemented by acquisition of 14,000 acre-feet of agricultural entitlement from Wheeler Ridge in (date).. Due to projected SWP shortages, additional entitlement may be required to meet the ID4 project water demand. Funding can be accomplished through a combination of Zone of Benefit No. 7 and ID40&M funds. The Agency should seek support of the City of Bakers- field and County of Kern on this concept.. 2. 2010 Plannin~ Area - The 2010 Planning Area is the area expected to urbanize by the year 2010. ThOse areas outside of ID4 that do not have a reliable water supply w.ili requii'e one when the land is developed. The lands requiring a water supply can be identified and a special Zone of Benefit established to secure a firm option for the allocated supply. During the interim period, the water may be sold to generate additional revenue as set forth in items 3 through 8 below. Once a project is developed for the 2010 Planning Area, all costs would be paid by the beneficiaries. Since all of these lands are located in unincorporated areas, the support of the Board of Supervisors will be required. In addition, the City of Bakers- field should be consulted because these lands may ultimately be annexed to the city. 3. Ground Water Member Units - Due to impending SWP shortages, overdraft will increase in these districts. However, for the same reasons the selling districts cannot afford the entitlement, it is anticipated that ground water member units cannot afford the full cost of the water as well. However, the supply may be affordable through a combined program of "' item 2 above and payment of basin-wide benefits through Zone of Benefit No. 19. This con- cept will require contracts with those ground water member units desiring to participate. 4. City Ag Contractors - In 2012, those districts contracting with the City of Bakersfield for a Kern River supply may lose that supply to use within the city. Those districts may be interested in acquiring SWP entitlement to compensate for the loss of city water. The program may be funded as provided in item 3 above and would require contracts with the interest districts. 5. CVP Contractors - These districts are addressed in two categories as follows: a. Arvin-Edison Exchan.~or~ - Arvin-Edison and its exchangors face a possible loss of CVP Delta water because the water supply is subject to renewal in 1995 and due to limited Delta pumping capacity which the supply is subordinate to SWP and long-term CVP demands. If Arvin, Kern-Tulare and Rag Gulch were to become member units, there may be a duel benefit through purchase of both the SWP supply and the attendant Delta pumping capacity for CVP water. b. FrJant C~3ntractors'- The Friant CVP supply is threatened by environmental demands for in-stream water on the San Joaquin, hostile acts by Congress, the contract renewal process and the State Water Resources Control Board (SWRCB) hearing. Due to these possible reductions, Kern County Friant districts may be interested in acquiring SWP entitlement and becoming member units of the Agency. The tow federal program set forth above may be funded as provided in item 3 above and would require contracts with the interested districts. 6. Non-Districted Area - There is an approximate 12,000 acre area situated between Rosedale, North Kern, Semitropic and Shafter-Wasco that is not within any district and has no surface supply. The area should acquire a SWP supply and either form their own district or annex ~ to one of the adjacent districts. Failing that action, those ground water benefits received by the non-districted area for importation of a purchased supply could be recouped through a special Zone of Benefit assessment. 7. Recreational Uses - There is a need for water for both the City's Kern River Plan and the county's Buena Vista Lakes. While these uses may not be able to support the'full cost'of water, they nevertheless represent possible uses that Shoul'd be explored with the City of Bakersfield and County of Kern. 8. Westside Water Purchases - Notwithstanding the need to transfer entitlement, water for permanent crops'will be needed by Westside districts during extreme SWP shortages. This represents a possible revenue source for SWP entitlement permanently transferred to ground water areas. 9. San Emidio Ranch o It appears there is .not sufficient water to meet the ultimate water requirements of the San Emidio Ranch development. It is assumed that these needs will be met by transfer from within Wheeler Ridge, however, this should be determined now. 10. Indian Wells Valley - Discussions have been held in the past with both districted and non- districted areas of Indian Wells Valley regarding acquisition of Sate water and delivery from the Los Angeles Aqueduct by exchange with Metropolitan Water District and Los Angeles Department of Water and Power. There is local controversy as to whether the water is needed and the cost of the supply in comparison to other alternatives. Contact should be made to determine if there is renewed interest: 11. AVEK - Portions of Antelope Valley-East Kern Water Agency (AVEK) are located within Kern County. Due to urban growth in the desert, contact should be made to determine the need for additional water. C. SummarT/Process - The 11 concepts set forth above represent a first attempt at a core of ideas (there may be more) for retaining SWP entitlement in Kern County. The obvious question .is whether these programs make sense financially and if so, how they can be implemented in time to effect transfers commencing in 1993. First we must get some idea of a ball park sales price from those districts desiring to transfer water. I hope to get those estimates this week where upon I will ask Gary Bucher's department to develop various financing scenarios based upon the more probable alternatives set forth above. We will try to get those numbers out this week. Once these numbers are developed. I strongly recommend that the State Contract Commirtee and I meet with members of the Board of Supervisors, City Council and directors of ground water districts to actively pursue these programs. xc: Kern County Board of Supervisors Bakersfield City Council Kern County Water Districts KCWA Policy Committee 6 STATE CAPITOL VICE-CHAIRMAN: SACRAMENTO CA 942¢9-000: HUM4N SERWCES (9' 6) 4~:~498 ~ COMMI~EES. '~ST~T ~FFICES ~~,~ ' ' . AGRICULTdRE RULES {805) 324-3300 WATER PARKS AND WILDLIFE ' ' 5 SOdTH M STREET TU~RE CA 93274 CHAIRMAN: (~o~ ~.~ T R I C E H A R V E Y ASSEMBLYMAN, THIRTY-THIRD OISTRICT September 10, 1992 CiTYOF eAKERSF'iELD WATER RffSOU~CffS Mr. Paul Dow, Manager Bakersfield Dept. of Water and Sanitation 1000 Buena Vista Road Bakersfield, CA 93311 Dear Mr. Dow: Now that the 1991-92 Legislative Session is over, I would like to take this opportunity to follow up your correspondence and update you on the final status of SB 959.~' You will be interested to know that SB 959 has died in the legislative process. The subject matter of SB 959 will be eligible for reconsideration only if the author or another member of the legislature chooses to introduce a new bill during the 1993-94 Legislative Session. Once again, thank you for sharing your views on legislative'issues which interest you. Correspondence from my constituents helps keep me updated on how they are affected by pending legislation. Please continue to inform me of your opinion on legislation that concerns you. Sincerely, TRICE HARVEY Assemblyman, Thirty-third District TH:bm Printed on Recycled Paper CALl FO R N I A ~-'.~ ~- ~ ~ ~ DEPARTMENT OF WATER AND SANITATION ~ ..~( ' ~ PAUL ~W, Manager , GENE B~ART, Dir~tor of Water Re~urces FLORN CORE. Assistant Director of Water Re~urces . '. MIKE SIDES. Sanitation Superintendent February 21, 1992 Phil Wyman, State Assemblyman 34th District State Capital Building Sacramento, CA 95814 . Dear Mr. Wyman: Once again, SB 959 the urban water user tax authored by Senator Robert Presley (D-Riverside), has been scheduled for hearing before the Assembly Water, Parks, and Wildlife Committee on February 25, 1992. This bill is of great concern to the City of Bakersfield and we urge you to oppose this proposed legislation. The $50.00 tax proposed on each acre-foot of water delivered by the City of Bakersfield'swater system would require a 30% increase in water rates to our customers. This additional tax, on top of pending drinking water quality requirements, will place an ever increasing'financial respons~ilty upon all water utilities and their customers. The tax would be h/ghly regressive and the burden of paying would fall most heavily on lower income customers who would pay a disproportionately high percentage of their disposable income toward this tax levy. The proposed bill would establish a precedent to the water utilities in that tax money on spec/ftc activities would be used for unrelated purposes. There is also an inherent inequity in the fact that all water agencies will benefit f~om programs funded by the proposed lax, but only urban water agencies and utilities are required to pay. In effect, areas that would be paying in much of the money will see little or no benefit. Those utilities and agencies that have worked hard to develop dependable water sources and maintain good water quality through serf funding pro,rams would be penalized or forced to unfairly subsidize other agencies. Although the tax has been approved by the Senate in 1991, State Senator Don Rogers voted no. Again, we urge you to aL~ oppose tkis proposed legislation. Very truly yours, PAUL DOW Water & Sanitation Manager cc: Mayor & City Councilmembers $. Dale Hawley, City Manager 1000 BUENA VISTA ROAD * BAKERSFIELD, CALIFORNIA 93311 · (805) 326-371S 92 - 08 W.B. CITY AGREEMENT N° DOMESTIC WATER SUPPLY AGREEMENT THIS AGREEMENT, made and entered into this ~ day of , 1992, by and between the CITY OF BAKERSFIELD (~21TY), a municipal corporation 'and CALIFORNIA WATER SERVICE COMPANY (COMPANY), a California public utility water corporation. RECITALS WHEREAS, CITY and COMPANY are each engaged in the supply of domestic water in and near the greater metropolitan Bakersfield area in contiguous service areas; WHEREAS, CITY and COMPANY are serving domestic water to citizens within the City of Bakersfield, more particularly near Stine Road and Panama Lane; WHEREAS, CITY and COMPANY each has its own water supply and under usual and ordinary operating conditions neither party would have occasion to purvey water to one another; WHEREAS, in view of a possible emergency, disaster or regulatory statute and to provide for more orderly development within the City of Bakersfield, CITY and COMPANY deem it is a wise precaution to arrange for an interconnection of the CITY water system with COMPANY water system in order tlJat water may. be SUpplied by either CITY or COMPANY to each other; NOW, THEREFORE, INCORPORATING'THE FOREGOING RECITALS HEREIN, IT IS MUTUALLY AGREED as follows: 1. INTERCONNECTIoN. An interconnection will be made at or near the intersection of Stine Road and Panama Lane. The interconnection shall generally consist of all piping, valves, covered boxes, and associated 'appurtenances required to interconnect the CITY and COMPANY water systems. Location to be depicted on approved plan and specification sheet 2. PLANS AND SPECIFICATIONS. COMPANY will prepare and submit plans and specifications for the design, construction and installation of the interconnection to CITY for review and approval in advance of start of construction. The approved plans and specifications shall be on file in CITY and COMPANY's designated business offices as specified herein. 3. WATER SUPPLY. In the event COMPANY or CITY shall require supplemental water for any'period of time due to natural or man-made disaster, loss of water supply due to power failure, mechanical malfunctions of pumping equipment and appurtenances, sanding of wells, water main breaks, substandard water .quality or other such sudden emergency that may occur to imperil safe water delivery to citizens and residents of the City of Bakersfield, CITY or COMPANY shall have the right to obtain water from one another through aforementioned interconnection. 4. WATER QUALITY. Water delivered through interconnection, from CITY or from COMPANY shall be of potable water quality and shall meet all applicable standards for drinking water quality as set by Federal, State, or local water quality regulatory entities. 5. INTERIM SERVICE. COMPANY or CITY may be served from one another through, the interconnection, on a temporary basis, pending completion of works to service their respective service areas, in which case the parties may receive this interim service for a period not to exceed two (2) years. 6. WATER SERVICE AREA. COMPANY and CITY agree that any water taken through interconnection shall not be used to expand water service to areas not within the existing franchised service area of COMPANY or the service territory of CITY. CITY and COMPANY agree not to represent the existence of the interconnection as a water supply to expand service area. 7. NOTIFICATION. COMPANY or CITY shall notify of the request to obtain water two (2) hours prior to' delivery of requested water supply. Notification shall include estimate of flow rate and total quantity required. 8. LIMIT OF SERVICE. The obligation to supply water hereunder is limited to surplus water above and beyond that required to service the needs of the supplying party's regular customers and to a reasonable period of time to permit the party being supplied to effect repairs or replacement to its own sources of water supply. The supplying party shall deliver water to the extent that it is able in view of its own circumstances and demands at that time, and under no circumstances will the supplying entity endanger the health and safety of its own customers by diverting supplies to other areas. The supplying party's, needs to its own customers shall be solely determined by the supplying party. 2 9. INSTALLATION OF INTERCONNECTION. COMPANY shah be respOnsible for the construction and installation of the interconnection, as described, hereunder. All costs for right-of-way, permits, engineering, surveying, labor, materials, supplies and any other costs associated in installation of CITY/COMPANY interconnectiOn as described herein, shall be arranged by COMPANy. 10. OWNERSHIP AND ACCESS. CITY and COMPANY shall share equally in ownership of interconnection facilities and each party shah at aH times have access to facilities. CITY and COMPANY agree to notify each. other of any intent to modify flows, read meters, or otherwise perform inspection of facilities. 11. MAINTENANCE AND REPAIR. CITY and COMPANY agree to share equally in the costs of extraordinary maintenance, repairs or replacement of components of interconnection facilities. Prior to commencement of any extraordinary maintenance, repairs or replacement of any or aH parts of the interconnection and appurtenances, CITY or COMPANY shah provide written estimates of such work that may need to be performed' to maintain the interconnection in good operating condition. Written estimates or repair Orders are to be approved by both CITY and COMPANY and costs shared equally (50% to each party). 12.' WATER COSTS. To compensate the party supplying water to the other, the party receiving water shah pay to the supplying party, for aH water delivered, the charges established by computing the average of the CITY and COMPANY (Bakersfield District) quantity rates, applicable at the time of water delivery. There is to be no monthly service, stand-by or readiness-to-serve charges assessed between CITY and COMPANY. COMPANY shall not charge this interconnection as an "active CITY service connection" per Agreement N° 89-278 or subsequent operations agreement. The quantity charges shah be made only for the months in which water is actually delivered and quantities and billings are to be determined and billed on a monthly basis. Payments are due under regular rules and regulations concerning invoices and billings by CITY or COMPANY. This illustration is for example only and is to be used for computing average quantity rate: Rates applicable at time of execution of agreement Current CITY quantity rate $0.409 per 100 cu. ft. Current COMPANY quantity rate $0.511 per 100 cu. ft. Total to be averaged $0.920 (Total/2) Averaged quantity rate to charge $0.460 per 100 cu. ft. 3 13. TERMINATION OF AGREEMENT. The term of this agreement shall be for the period commencing upon the date that CITY executes this, agreement and continuing thereafter until either party gives written notice of its intention to terminate. Such termination notice shall be given ninety (90) days prior to the date either party intends to terminate this agreement. In the event of termination, COMPANY agrees to pay any costs reasonably borne by CITY in removing or causing to excavate, remove or render inoperative the interconnection and restore affected area to original condition. 14. PUBLIC UTILITIES CODE. This agreement is entered into in accordance with COMPANY requirements under the California Public Utilities Commission and any and all rules and regulations as may apply to COMPANY. CITY is not under the jurisdiction of California Public Utilities Commission and entering into this agreement does not construe CITY as recognizing authority or control by said Commission. 15. NON-EXCLUSIVE AGREEMENT. CITY and COMPANY agree that the rights to water supply and service through interconnection are non-exclusive and in no way dedicates either water supply to sole delivery and use to the other. CITY and COMPANY reserve the right to enter into other agreements concerning the interconnection and delivery of water supplies. Nothing herein shall be deemed to constitute a dedication of the water supply to either party to provide water to the service area of the other party or constitute a permanent commitment to suPPly water to the other party. 16. DISRUPTION OF SERVICE. Should CITY or COMPANY operations in any way interfere with each others operations, the interconnection shall be closed or rendered inoperable for such period of time necessary to cease interference or disruption of normal operations by the offending party. 17. INDEMNIFICATION. CITY and COMPANY shall be equally responsible for the operation and maintenance of the interconnection. Neither party shall be liable to the other for any loss, damage, liability, claim or cause of action for damage to or destruction of property or for injury to or death of persons arising solely from any act or omission of the other party's officers, agents and employees. Should any claim or lawsuit arise due to neglect of COMPANY or CITY, COMPANY or CITY agree to indemnify and hold each other harmless from any and all claims, demands liabilities, losses or causes of action which arise by virtue of its own acts or omissions, directly or through its officers, agents, and employees to such extent and in such part as the respective parties are found by reason of law to have proximately caused the injury or damage. The party against whom any claim arising from any subject matter of this agreement is filed shall give prompt notice of such filing of the claim to the other party. 4 18. DEFAULT. Should CITY or COMPANY default in the performance of any covenant, or condition of the agreement contained herein, and the default is not cured within thirty (30) days after written notice of said default is served upon the offending party, then this agreement will automatically terminate; provided, however, if the nature of the breach reasonably required more than thirty (30) days to cure, this agreement shall not terminate if CITY or COMPANY commences to cure the breach within thirty (30) days thereafter and diligently pursues the cure to completion. 19. WAIVER OF DEFAULT. The failure of either party to this agreement to enforce against another, a provisi°n of the agreement shall not constitute a waiver of that party's right to enforce such a provision at a later time, and shall not serve to vary the terms of this agreement. 20. FORUM. Any lawsuit pertaining to any matter arising hereunder or growing out of this agreement shall be instituted in Kern County, California. 21. NOTICES. All notices relative to this agreement shall be given in writing and shall be sent by Certified or registered mail and be effective upon depositing in the United States mail. The parties shall be addressed as follows, or at any other address designated by notice: CITY: CITY OF BAKERSFIELD City Hall 1501 Truxtun Ave. Bakersfield, CA 93301 COMPANY: CALIFORNIA WATER SERVICE COMPANY P. O. Box 1150 San Jose, CA 95108 22. ASSIGNMENT. This agreement shall not be assigned by any party, or any party substituted, without prior written consent of CITY and COMPANY. 23. BINDING EFFECT. The fights and obligations of this agreement shall inure to the benefit of, and be binding upon, the parties to this agreement and their heirs, administrators, executors, personal representatives, successors and assigns. 242 MERGER AND MODIFICATION. This contract sets forth the entire agreement between the parties and supersedes all other oral or written representations. This agreement may be modified only in a writing approved by the City Council and signed by all the parties. 25. CORPORATE AUTHORITY. Each individual executing this agreement represents and warrants that they are duly authorized to execute and deliver this agreement on behalf of the corporation or organization named herein and that this agreement is binding upon said corporation or organization in accordance with its terms. 26. COMPLIANCE WITH ALL LAWS. COMPANY' Shall, at COMPANY's sole cost, comply with .all of the requirements of Municipal, State, and'Federal authorities now in force, or which may hereafter be in force, pertaining to this agreement, and shall faithfully observe in all activities relating to or growing out of this agreement all Municipal ordinances and State and Federal statues, rules or regulations now in force or which may hereafter be in force. 27. INDEPENDENT CONTRACTOR. COMPANY shall not become or be deemed a partner or joint venturer with CITY or associate in any relationship with COMPANY by reason of the provisions of this agreement other than specified herein. COMPANY shall not, for any purpose, be considered an agent, officer or employee of CITY in regard to this agreement. 28. EXECUTION. This agreement is effective upon full execution. It is the product of negotiation and therefore shall not be construed against any party. 29. INTEREST. The parties shall pay each other interest at an annual rate of ten percent (10%) compounded quarterly on all expenses or costs reasOnably incurred by CITY or COMPANY in the enforcement of the indemnity provisions of this agreement, and of any sums CITY or COMPANY may pay as a result of claims, demands, cost or judgments with respect to the SUbject matter of this agreement, from the date such sums are actually paid. 30. PRE-JUDGMENT INTEREST. In the event of a default by any party to this agreement, the non-defaulting party shall be allowed to recover interest on all damages at the legal rate from the date of the breach. 31. SURVIVAL OF~ REPRESENTATIONS. Ail representations, warranties and covenants of CITY and COMPANY as set forth herein shall survive the termination of this agreement. 32. POSSESSORY INTEREST TAXES. COMPANY's interest hereunder may be subject' to property taxation and COMPANY, as a party in whom a possessing interest is vested, may be subject to the p.ayment of property taxes levied on such interest, and shall pay all such possessory interest taxes. 33. RECORDS. COMPANY's records concerning maintenance, replacement and repair of interconnect facilities shall be available for CITY'S review during normal business hours and shall be made available to CITY'S representatives upon 24 hours written notice. IN WITNESS WHEREOF, the parties hereto 'have caused this Agreement to be executed, the day and year first-above written. "CITY" CITY OF BAKERSFIELD By CLARENCE E. MEDDERS Approved as to form: Mayor LAWRENCE LUNARDINI City Attorney COUNTERSIGNED: By. GREGORY KLIMKO Finance Director "COMPANY" CALIFORNIA WATER SERVICE CO. Title Title 92 - W.B. ~ AGREEMENT NO. DOMESTIC WATER OPERATIONS AGREEMENT THIS AGREEMENT, dated ., 1992, by and between CITY OF BAKERSFIELD, a California municipal corporation ("City"), .and CALIFORNIA WATER SERVICE COMPANY, a California public utility water corporation ("Company"). RECITALS WHEREAS, City owns a domestic water enterprise whose facilities currently furnish water service to approximately 16,500 customers in an area in the City of Bakersfield and some areas in the unincorporated County of Kern; and WHEREAS, City. initiated a Request for Qualifications (RFQ) and Request for Proposals (RFP) for the operation and maintenance of the City of Bakersfield Municipal Water System ("System"); and WHEREAS, Company submitted a response to City's RFQ and RFP and the City of Bakersfield Water Board, at its May 5, 1992 meeting, accepted the Company proposal and authorized the negotiation of a contract for City Council approval; and WHEREAS, This agreement and Contract is the result of negotiations to operate and maintain the facilities within the Bakersfield Municipal Water System, including but not limited to the Ashe, Fairhaven, and Riverlakes Divisions; and WHEREAS, Company furnishes public utility water service throughout the State of California, including service to customers in the City of Bakersfield and surrounding unincorporated areas; and WHEREAS, Company is willing to provide the highest possible level of service to City, not as a public utility, but as contractor and agent to City. NOW, THEREFORE, incorporating the foregoing recitals herein, it is mutually agreed as follows: 1. OPERATION OF SYSTEM. Company is to provide, as contractor and agent for City and under the supervision of City, any and all acts and services necessary to furnish the highest possible level of domestic water service to customers .and in the day-to- day operation of the City System. Company will provide all qualified, trained and, if required, licensed and certified personnel, direct supervision, fully equipped vehicles, proper tools, equipment, 'fuels and various supplies to operate and maintain City System. The services to be provided shall include, but shall not be limited to: (a) Daily operation of the System through operating pumps and pumping stations, by certified California water treatment operators of Grade II or better; water treating or disinfection equipment operation; transmission and distribution system operations with records, equipment inspections, landscape maintenance, cross connection control coordination, valve exercising program, water main flushing, fire hydrant inspection, service connection replacement or repair, repair of main breaks or leaks, new tie-ins, testing and routine maintenance of meters, read and log supply meters, read and log electric consumption meters, customer premise leak detection, obtaining permits for normal or routine operations, and setting meters in new tracts; replacement or repair of customer meters with large meters serviced annually; meter reading monthly using the most efficient and error free method; (b) Customer services shall include but are not limited to: rendering monthly bills on behalf of City to all receiving City water service; payment processing in a practical and acceptable manner; responding to customer inquiries on water service, bills, leaks or other concerns; using reasonable efforts to collect all bills on behalf of City; processing applications for new or transfer of service; collection of customer deposits for new service; collection of construction meter deposits; investigation of taste and odor complaints; (c) Company will keep an inventory and warehouse adequate materials for daily operations; water main pipe of all sizes and specifications to the City System, vanes, hydrants, service material, meter boxes, vaults and various other materials required for service connection, water main and general water system installation and repairs, and an adequate supply of meters to meet new construction demands; (d) Company is to provide and maintain twenty four (24) hour on-call response to emergency calls or customer inquiries; provide City an e, mergency or natural disaster operations plan; maintain an emergency communications system; in addition to routine equipment, provide or have access to any and all equipment required to perform emergenCy repair work to vital system equipment and water mains; shall use reasonable effort to provide a maximum of one (1) hour response to customer inquiries concerning water quality and two (2) hour for other inquiries; (e) Other services Company will perform are to pay all operation and maintenance expenses except as noted in ¶#5 herein; to compute the amounts of refunds on behalf of 'City where City is obligated to make refund under extension agreements heretofore or hereafter entered into by City relating to the System; implement a Water Conservation or Waste of Water program; provide City with accurate and reproducible distribution system maps that are updated on a semi-annual basis and up-to-date plat maps on an annual basis; and 2 (f) !n general, to do all such acts and perform all such services as required to operate the System to deliver the highest and best service possible.and in this connection, Company agrees to operate and maintain the System in a manner similar to that in which it operates its Bakersfield district, subject, however, to the provisions of the Bakersfield Municipal Code, Title 14, Chapters 14.04, 14.06 and 14.08, as presently constituted or amended, concerning domestic water matters, and in all respects to the provisions of this Agreement. 2. WATER QUALITY. Company will provide all trained and qualified personnel to oversee and ensure the City System is in compliance with all laws and regulations. Company shall perform, or cause to be performed, by a State of California certified laboratory, any and all water sampling, analysis, testing and reporting as required for water sources, distribution mains or customer premises, by the U. S. Environmental Protection Agency, State of California Department of Health Services and Office of Drinking Water and the Kern County Environmental Health Department or special acts of the U. S. Congress or California Legislature. Company will provide the water quality services as listed herein, which shall include but not be limited to; scheduling and collecting water samples to test for microbiological, inorganic and organic constituents, transportation to certified lab, preparation of monitoring plans, sample collection training, reporting to appropriate regulator, record keeping, analysis interpretation, special or emergency sample collection and analysis, emergency notification to affected customers, any and all published and distributed customer reports on water quality, new well or water source sampling and analysis, response to customer inquiries on water quality, coordination of cross-connection control and potential contamination issues, conduct annual system survey with California State Depa,tment of Health Services, obtain permits and compliance with appropriate Air Resources Control district and pay fines or assessments if due to Company neglect, provide hazardous materials control program, and ensure all operator certification is in compliance with State and Federal requirements. 3. BUSINESS OFFICE. Company is to operate and maintain a local business office, located within the City limits, for the purpose of conducting business with customers of the system. Company will provide adequate staffing for at least the following services: walk-in bill paying service, new service accounts, closing accounts, service transfers, handle customer complaints and offer customer assistance regarding any aspect of City water utility operations, and customer service. Office hours are to be Monday through Friday, 8:00 am to 5:00 pm, excluding holidays, with a posted "emergency after hours" telephone number. 4. TRANSMITYING REVENUES. Company shall transmit on each business day to such depository as City or City Treasurer may designate, all monies collected by or otherwise paid to Company for service rendered and water delivered under and during the term of this Agreement.. City shall promptly inform Company of the amounts and sources of all monies collected by or paid to City on account of service rendered to customers of the System during the term of this Agreement. 3 5. PAYMENT OF EXPENSES. Company shall pay all normal expenses it incurs in Operating and maintaining the System, under the terms of this agreement; however, City shall pay directly all bills and costs for (i) real property taxes and assessments levied or assessed against the SyStem or any part thereof, (ii) franchise and business taxes imposed upon or measured by revenues from the System, (iii) electric or gas power charges in operating the System, (iv) pump taxes levied upon extraction of water from wells serving the System, (v) State Department of Health Services fees, (vi) water purchased for delivery to the System and (vii) water mainline extension agreement refunds. Company shall promptly upon receipt forward to City any invoices or documentation related to items listed in this section. 6. EXTRAORDINARY MAINTENANCE. 'Company shall notify City, in writing, of repairs needed (such as main leaks) or non-scheduled maintenance ("Extraordinary Maintenance") that by Company's estimate will cost $2,000.00 or more. Company shall not accomplish such repairs or Extraordinary Maintenance unless it shall be directed to do so by City in writing or other appropriate written instrument. Upon receipt of City's written approval, Company will cause such work to be performed and upon completion, will bill City for amount of the actual total installed cost of such work, if such work exceeds $2,000.00 in cost. Nothing herein contained shall, however, be deemed to limit City's right to cause such repair or Extraordinary Maintenance to be accomplished by a person other than Company, in which event Company shall bill City for Company's engineering, super~sion, inspection and construction overhead charges at the rate of eight percent (8%) of the amount billed to .City by said person other than Company as the. total cost of such Extraordinary Maintenance item. City agrees to pay Company within thirty (30) days after receipt of such bill. '7. EMERGENCY REPAIRS. In the event of an emergency involving any part of the System which in Company's judgment threatens the public health or safety, and ff in the Company's judgment immediate action is required, Company shall have the right to perform, or cause to be performed, any work on the System (whether repairs, maintenance or capital additions) regardless of the estimated cost thereof, free from any provision of paragraph 6 or from any requirement that the work be let by competitive bid. Company shall notify City as soon as possible as to the work done and proposed to be done as a result of such emergency threatening the public health and safety and of Company's estimate of the cost thereof. Upon notification by Company of emergency work, City shall have the right to order cessation of such work, if other appropriate means are available to nullify public health and safety emergency. Company shall bill City for the actual total installed cost of such work, including Company's construction overhead charges computed at the rate of eight percent (8%) of the total cost of such work. City agrees to pay Company the amount so billed within thirty (30) days after receipt of such bill. 4 8. MANAGEMENT REPORTS. Company shah provide City written reports, in a form suitable to both parties, related to the operations and maintenance of the City System, as described herein. The reports will include, but not be limited to: (a) Daily: deposit slip for the deposit made by Company to City designated depository or bank account for payments received on behalf of City; (b) Weekly: summary of extraordinary maintenance, capital improvement, developer installations with job description, percentage of complete and pertinent comments relative to the project; service and complaint report with listing of customer complaints and inquiries, reason for customer contact and resolution of the matter; water quality ~inalysis of microbiological testing; (c) Monthly: sales report showing number of accounts, water consumption and revenue by customer classification; month end accounts receivable showing billings and collections for City System; summary of customer deposits and construction meter deposits collected and remitted to City; water production by source; observed water levels in groundwater wells; electrical consumption summary by each well or booster station; list and analysis of water supply wells sampled and tested; (d) .Annually: consumption history by customer account and classification; listing and analysis results of all water supply sources (groundwater wells); and (e) Any other report or information that is pertinent and relevant to the operation and maintenance of the City System. 9. CONSIDERATION. Beginning J~nuary 1, 1993, in consideration of the services furnished by Company hereunder as City's contractor and agent, City shall pay Company a monthly fee of $6.33 for each active City service connection served the preceding month. Company shah review its costs hereunder to determine whether an adjustment of said monthly fee is required during the succeeding calendar year by reason of increase or decrease in the aggregate amount of expenses incurred by Company in performing its obligations hereunder. Adjustments to monthly fee shah not be in excess of the percentage wage and benefit adjustment of Company's employee agreement with the Utility Workers Union of America A.F.L.-C.I.O. for the succeeding calendar year. ff any increase or decrease in the monthly fee is determined by Company to exceed four percent (4%), then any amount in excess of four percent (4%) shah be negotiated by the parties acting in good faith; Company shah notify City of monthly fee adjustment not later than 30 days prior to the end of each year of the term hereof. In the event Company shah notify City of any fee adjustment, City's .obligation for each month of the entire succeeding calendar year shall be at the adjusted amount. Company shall not be entitled to additional reimbursement from City, nor shah City be entitled to reimbursement from Company for current year monthly fee based on said review of costs incurred by Company. 10. ENGINEERING SERVICES. Company is to employ, retain or otherwise make available, qualified and licensed engineers, to City for consultation regarding operations, maintenance, additions and capital improvement of City system. The engineering areas of expertise should include, but not be limited to: distribution system design, in existing and new service areas, size and locations of water mains, services, fire hydrants and other special appurtenances; design of special facilities such as groundwater wells, pumps and water storage equipment with controls; operational engineering methods for the most efficient and cost effective means of operating the City System; electrical engineering; communications involving radio, cellular telephone and paging services; computer applications relating to water operations and reporting; general maintenance programs of City facilities with inspections, testing and review. 11. CAPITAL IMPROVEMENTS.. City shall have the option of initiating and completion of capital improvement projects by authorizing, in writing, for Company to: (a) prepare a cost estimate for each System addition or improvement. Following written approval of estimate by City, Company will proceed with the work of installation using in-house labor and equipment or contractor, whichever is most cost efficient. Upon completion of installation, Company shall bill City for the actual total installed cost of work, plus eight percent (8%) of such cost, for engineering and inspection. City agrees to pay Company the amount so billed within thirty (30) days after receipt of invoice; or (b) provide engineering, plans, specifications, supervision and inspection with construction completed by contractors selected by City pursuant to City's applicable competitive bidding procedures. Company shall bill City eight percent (8%) of the estimated cost of said addition or improvement. City agrees to pay Company the amount within thirty (30) days after receipt of Company invoice; or (c) supervise the preparation of engineering plans and specifications by an 'independent consulting engineer selected and paid by City, with construction completed by contractors selected by City pursuant to City's applicable competitive bidding procedures. Company will provide inspection of the work during construction. Company shall bill City foUr percent (4%) of the estimated total installed cost of each such capital improvement. City agrees to pay the amount within thirty (30) days after receipt of Company invoice; and (d) in all cases, Company shall furnish qualified inspectors at the site of all construction work on capital items and shall ensure construction complies with City specifications. Such inspectors may be Company employees, consulting engineer employees or such other qualified inspectors as may be required. City is to be provided at the conclusion of the installation of capital improvements, any and all documents, maps, drawings, plans (including "as-built" plans), plans of record and certifications of acceptance of the construction of such improvements. 6 12. SUBDIVIDER INSTALLATIONS. All water pipelines, service connections or other appropriate extensions of the System to furnish service to individuals or subdivisions shall be made pursuant to contract between City and the individual customer, developer or subdivider. The form of such contract shall be determined by City. Company shah not be obligated to install any such extension, but may provide services as described herein, at the request of City and subdivider. Company may be requested to and Company is to provide: ' (a) Engineering plans and specifications to the individual customer, developer or subdivider, as the case may be, and to City, with a cost estimate for the total installation thereof, and provide inspection and recordation of the construction wOrk. City agrees to pay Company eight percent (8%) of the estimated total installed cost of such extension. City agrees to pay Company the amount so billed after receipt of payment, billed by City to customer, developer or subdivider; or (b) For a customer, developer or subdivider that is allowed by City to prepare main extension construction plans and cost estimates of such extension, Company shall, at City discretion, review and supervise the preparation of such plans to City's specifications, and, when appropriate, approve the cost estimate of the main extension. Company shall ~evaluate the maximum refund liability of City for such main extension, and supervise and inspect the installation thereof. City agrees to pay Company four percent (4%) of the cost estimate for such extension within thirty (30) days receipt of Company invoice; and (c) If, upon request of City, Company connects, or causes to be connected~ facilities installed under this paragraph, to the City System, City agrees to pay Company within thirty (30) days receipt of inVoice by Company of the actual or direct costs in performing the connection. 13. MAINLINE EXTENSION CONTRACTS. City shah furnish Company a copy of each mainline extension contract executed by City relating to City System, for those contracts which City desires Company to compute refunds. Company shall cumulate revenue information for each individual tract or subdivision affected in the contract and compu, te the refunds due under terms of the contract. Company is to notify City in writing and report the amount of refunds due on the anniversary date of the individual contracts. City shall be responsible for payment of such refunds to the persons entitled thereto. 14. WATER SERVICE AREA. Company shall operate City System within the boundaries and service areas shown on the map attached as Exhibit A, whose boundaries and service areas may change from time to time by resolution of the City Council. Company shall be notified, in writing, of any changes in boundary or service areas within 30 days of such City Council action. 7 15. WATER RATES. During the term hereof City shall establish and maintain water rate schedules applicable to the areas shown on Exhibit A. Rates may be changed from time to time as the City, in its sole discretion, sees fit. City and Company agree all service connections, except for fire protection services, shall be metered and be subject to applicable rates. 16. RECORDS. City shall have access to Company's financial, operating, maintenance, complaint, or any other records and reports that apply to the Company operating the City System. City shall have access during normal business hours at the Company headquarters or appropriate local Bakersfield offices, throughout the term of this Agreement and, in this connection, may require the re-production of Company's records of such statements, invoices and other documents as may be reasonably necessary to support any charge or bill submitted by Company pursuant to the 'provisions of this Agreement, records of system customer billing transactions and System collections remitted to City. 17. TERM. The initial term of this Agreement shall be for three years commencing January 1, 1993, provided, however, that such term shall be renewed for successive three year periods each, unless either party hereto shall notify the other at least one-hundred eighty (180) days prior to the expiration of the term of this agreement 18. HOLD HARMLESS. Company shall save, hold harmless and indemnify City, its officers, agents, employees and volunteers from all claims, demands, damages, judgments, costs of expenses in law or equity that may at any time arise from or related to any work performed by the Company, its agents, employees or subcontractors under the terms of this agreement. 19. INSURANCE. Company shall be responsible only for its own negligence, intentional acts, and/or omissions. Company shall procure and maintain and furnish the City Risk Manager and the Water and Sanitation Department with a certificate of insurance e~dencing the insurance required for the term and duration of this agreement with the following minimum types and limits of insurance: (a) Automobile (vehicle) liability insurance shall provide coverage for owned, non-owned and hired autos, with coverage on an occurrence basis for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than one million dollars ($1,000,000) per occurrence; (b) Comprehensive general liability insurance, providing coverage on a per occurrence basis for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than one million dollars ($1,000,000) per occurrence. Said policy may provide for serf-insured retention by Company of $250,000 per occurrence; 8 (c) State of California approved self-insurance program for Workers' Compensation. Program will comply with State required statutory limits for Workers' Compensation; (d) Additional insured endorsement in favor of City, its mayor, council, officers, agents employees and volunteers; and (e) All policies required of the Company hereunder shah be primary insurance · with regard to items for which Company is responsible as respects the City, its mayor, council, officers, agents, employees and volunteers and any insurance or self-insurance maintained by the City, its mayor, council, officers, agents, employees and volunteers shah be excess of the Company's insurance and shall not contribute with it. ff any part of the work under this agreement is sublet, similar insurance shah be provided by or on behalf of the subcontractors to cover their operations. All policies shah contain an endorsement providing the City with ten (10) days written notice of cancellation or material change in policy language or terms. 20. DISPUTED BILLS. ff City disputes or questions any portion of any bill, invoice or statement submitted to it by Company or any amount purportedly owing by it to Company, City shall promptly notify Company of the amount thereof so disputed or questioned, which amount City shall not be obligated to pay until such dispute or questions shall be finally resolved. However, City agrees in each such instance to pay Company, when due, the portion of such bill, statement or amount not so disputed or questioned. 21. PAYMENT OF BILLS. City agrees to take all necessary steps procedurally so that payments due from it to Company pursuant to the provisions of this Agreement will be made on or before the applicable day specified herein. 22. AGREEMENT CONFORMS 'TO CHARTER. City represents and warrants to Company that this Agreement and the provisions hereof conform to City's Charter as currently in effect, ff any subsequent amendment to or revision of said Charter shall in any way affect this Agreement or the validity of any provision hereof, City agrees to give prompt notice thereof to Company. In such event the parties hereto agree to make such amendments to or revisions of this Agreement as they may deem necessary or appropriate under the circumstances, 23. TITLE. Company shall have no title to, or ownership interest in, the System or any part thereof whatsoever. 24. NOTICES. All notices relative to this agreement shah be given in writing and shah be sent by registered or certified mail, postage prepaid, and addressed to the party to whom such notice is given at the following respective address: 9 ' To City: CITY OF BAKERSFIELD City Hall 1501 Truxtun Avenue Bakersfield, CA 93301 To Company: CALIFORNIA WATER SERVICE CO. P. O. Box 1150 San Jose, CA 95108 25. PARAGRAPH HEADINGS. Paragraph headings in this Agreement are for convenience only and are not a part of this Agreement and do not in any way limit or amplify the terms and provisions of this Agreement. 26. NATURE OF SERVICE. It is specifically recognized and intended by 'the parties hereto that in performing its obligations under this Agreement, Company shall not offer or perform any public utility service but shall act solely as contractor and agent for City. Company specifically does not dedicate itself to render a public utility water service to customers within the area shown on Exhibit A hereto, but rather agrees to furnish a non-utility service therein in accordance with the provisions of this Agreement. 27. CORPORATE AUTHORITY. Each individual executing this Agreement represents and warrants that they are duly authorized to execute and deliver this Agreement on behalf of the corporation or organization named herein and that this Agreement is binding upon said corporation or organization in accordance with its terms. 28. COMPLIANCE WITH ALL LAWS. Company shall, at Company's sole cost, comply with all of the requirements of Municipal, State and Federal authorities now in force, or which may hereafter be in force, pertaining to this Agreement, and shall faithfully observe in all activities relating to or growing out of this Agreement all Municipal ordinances and State and Federal statutes, rules or regulations now in force or which may hereafter be in force. 29. PREVAILING WAGES. Pursuant to Chapter 1 of Part 7 of' Division 2 of Labor Code (commencing with Section 1720), Company agrees that in performing work as described herein, by itseff or through any subcontractor, eight (8) hours labor shall be a day's work and forty (40) hours labor shall be a week's work, and that Company shall keep an accurate record showing the name and actual hours worked for all employed in said work, and that said record shall be kept open at all reasonable hours for inspection pursuant to Section 1812 of the Labor Code. Company and any subcontractors shall not pay less than the general prevailing rate of per diem wages and the general prevailing rate for holiday and overtime to all workers employed by Company in performing work as described herein. The prevailing rate for each craft, classification or type of work is determined by 'the Director of the California Department of Industrial Relations, and his schedule of prevailing rates is on file at Company offices located in San Jose and Bakersfield. The schedule is incorporated herein by this reference. City shall have the right to inspect payroll 10 records during normal business hours and shall have the right to question workers at any · time concerning the wages being paid. Company shall not interfere in any way with the City's right to investigate conformance with the wage provisions of this Agreement. Company shall provide City two copies of employee classifications and rates of wages paid employees and any updates that may occur. 30. LABOR NONDISCRIMINATION. Company shall conform to the requirements of the California Fair Employment and Housing Act, to the regulations promulgated by the Fair Employment and Housing Commission to implement said Act, and to the nondiscrimination, affirmative action and equal employment opportunity requirements in the special provisions. 31. WAIVER OF DEFAULT. The failure of any party to enforce against another provisions of this Agreement, shall not constitute a waiver of that party's right to enforce any provisions at a later time, and shall not serve to vary'the terms of this Agreement. 32. FORUM. Any lawsuit pertaining to any matter arising under or growing out of this contract shall be instituted in Kern County, California. 33. TIME. Time is of the essence in this Agreement. 34. ASSIGNMENT. This Agreement shall not be assigned by any party, or any party substituted, without prior written consent of City and Company. 35. BINDING EFFECT. The rights and 'obligatiOns of this Agreement shall inure to the benefit of, and be binding upon, the parties to. the contract and their heirs, administrators, executors, personal representatives, successors and assigns. 36. ATTORNEY FEES. In any action to enfor~ the terms of this Agreement, the prevailing party shall be entitled to recover its attorney's fees and court costs and other nonreimbursable litigation expenses, such as expert witness fees and investigation expenses. 37. MERGER AND MODIFICATION. This contract sets forth the entire agreement between the parties, and supersedes all other oral or written provisions. This contract may be modified or terminated only in a writing approved by City Council and signed by all the parties. 38. EXECUTION. This Agreement is effective upon full execution. It is the product of negotiation and therefore shall not be construed against any party. 39. TAX NUMBERS. Company Federal Tax I.D. is No. 94-0362795. Company is a corporation? Yes __lE._ No . 11 IN WITNESS WHEREOF, the parties thereto have executed this Domestic Water Operations Agreement in duplicate the day and year first-above written. "CITY' CITY OF BAKERSFIELD By. CLARENCE E. MEDDERS Mayor. APPROVED AS TO FORM: LAWRENCE LUNARDINI City Attorney COUNTERSIGNED; GREGORY KLIMKO Finance Director "COMPANY" CALIFORNIA WATER SERVICE CO. By. Title -By Title 12 CITY OF BAKERSFIELD DOMESTIC WATER DIVISION SERVICE AREA MAP ' CITY OF BAKERSFIELD DOMESTIC WATER SERVICE AREA BOUNDARIES LEGAL DEscRIPTION A parcel of land situated in the incorporated and unincorporated area of the County of Kern, State of California, being all or a portion of Sections 29, 34, 35, and 36 of Township 29 South, Range 26 East, M.D.B. & M., Sections 1, 2, 3, 12, and 25 of Township 30 South, Range 26 East, M.D.B. & M., Sections 7, 8, 14, 15, 17, 20, 22, 23, 26, 27, 28, 29, 31, 32, 33, and 34 of Township 29 South, Range 27 East, M.D.B. & M., Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 26, 27 and 34 of Township 30 South, Range 27 East, M.D.B. & M. more particularly described as follows: Beginning at the Northeast quarter corner of Section 2, Township 30 South, Range 27 East, M.D.B. & M., said point also being on the North right of way line of Stockdale Highway; Thence (1) East along said North right of way line to a point on the northerly prolongation of the West right of way line of McDonald.WaY; Thence (2) South along said northerly prolongation line and said West right of way line of McDonald Way to a point on the easterly prolongation of the North boundary line of Tract No.. 1610, filed April 3, 1952, in Book 8 of maps at page 1 in the Office of the Kern County Recorder; Thence (3) West along said prolongation line and North line of said Tract No. 1610 to the northwest corner thereof; Thence (4) Southwesterly along said Tract No. 1610 to the northwest comer of Tract No. 1645 filed December 18, 1952 in Book 8 of maps at page 38 in the Office of the Kern County Recorder; Thence (5) Southwesterly along said Tract 1645 boundary line to a point on the East line of Section 3, T. 30 S., R. 27 E.; Thence (6) South along said East Section line to the East quarter corner of said Section 3; . Thence (7) West along the South line of the North half of said Section 3 to the northerly prolongation of the east right of way line of New Stine Road; Thence (8) Southerly along said prolongation line and East right of way line to a point on the south line of said Section 3; Thence (9) East along said South section line to the southeast comer of said Section 3; Thence (10) South along the East lines of Sections 10 and 15, T.30S., R.27E. to a point on the northeasterly right of way line of the Farmer's Canal; C:\WP-~SC~LEGALDES.WP (Revision date. June 1~, 19~) City of Bakers~field - Domestic Water System Legal Description (continued) Page 2 Thence (11) Southeasterly along said right of way line to point on the South right of way line of White Lane; Thence (12) Easterly along said South right of way line to point on the east line of the West half of the southwest quarter of Section 14, T. 30 S., R. 27 E.; Thence (13) South along said East line to a point on the North right of way line of the Southern Pacific Railroad-Asphalto Branch; Thence (14) West along said North right of way line to the West line of said Section 14; y. Thence (15) South along the West lines of Sections 14 and 23, T. 30S., R. 27 E. to the South line of the North half of the northwest quarter of said Section 23; Thence (16) East along said South line to a point on the westerly right of way line of the Farmer's Canal; Thence (17) Southwesterly along said right of way line to a point on the West line of said Section 23; Thence (18) South along said West section line to the West quarter of said Section 23, being the center line of Harris Road; Thence (19) East along the South line of the North half of said Section 23 to a point on the East line of the West half southwest quarter of said Section 23; Thence (20) South along said East line and continuing South along the East line' of the West half of the Northwest quarter of Section 26 to a point on the North right of way line of the Arvin-Edison Canal; Thence (21) Westerly along said canal right of way line to a point on the centerline of Stine Road; Thence (22) Southerly along said centerline of Stine Road to the half section line of Section 27, T. 30 S., R. 27 E.; Thence (23) Westerly along said half section line a distance of 2640 feet, said point also being the center of section 34, T. 30 S., R. 27 E.; Thence (23a) North along half section line of section 34, R. 30 S., R. 27 E. 2640 feet to a point on the south line of section 27, T. 30 S., R. 27 E.; · C:\WP.FILEhMIS~ALDES.WP (Revision date - June 18, 1992) City of Bakersfield'- Domestic Water System Legal Description (continued) Page 3 Thence (23b) West 2640 feet along said south line of section 27, T. 30 S., R. 27 E. to the East line of section 28, T. 30 S., R. 27 E.; Thence (23c) North along said East line of section 28, T. 30 S., R. 27 E. to a point at the Southeast section corner of Section 21, T. 30 S., R. 27 E. Thence (24) N.00° 35'E. along a line parallel to the centerline of Stine Road to a point on the South line of Section 22, T. 30 S., R. 27 E.; Thence (25) West along the South lines of Sections 21, 20, and 19 of T. 30 S., R. 27 E., to the point also being the Northeast quarter corner of Section 25, T. 30 S., R, 26 E.; Thence (26) S.00° 35'W. along the easterly boundary of said Section 25 a distance of 1320 feet; Thence (27) N.89° 50'W. along a line 1320 feet South and parallel to the North line of said Section 25 a distance of 1320 feet; Thence (28) N.00° 35'E. along a line 1320 feet West and parallel to the Easterly boundary of said Section 25 a distance of 1320 feet; Thence (29) S.89° 50'E. along the North boundary line of said Section 25 a distance of 1320 feet to a point also being the Northeast quarter corner of said Section 25; Thence (30) North along the West line of Sections 19 and 18, T. 30 S., R. 27 E. to the Southwest quarter corner of Section 7, T. 30 S., R. 27 E.; Thence (31) West along the South line of Section 12, T. 30 S., R.. 26 E. a distance of 2640 feet to a point being the West line of the East half of said Section 12; Thence (32) Northerly along said West line of the East half of said Section 12 to a point being on the South line of Section 1, T. 30 S., R. 26 E.; Thence (33) West along said South line of Section 1 to the Southwest quarter corner of said Section 1; Thence (34) North along the West line of said Section 1 to a point on the South line of the North half of Section 2, T. 30 S., R. 26 E.; Thence (35) West along said South line of Section 2 and 3, T. 30 S, R. 26 E. t° the West line of said Section 3; C:\WP-FILEhMI SC~LEGALDES.WP ' (Revlalon date. June 18, 1992) City of Bakersfield - Domestic Water System Legal Description (continued) Page 4 Thence (36) North on said West line to the Northwest corner of Section 3, T. 30 S., R 26 E.; Thence (36a) East along the North line of Section 3, T. 30 S., R. 26 E. to the Northeast corner of said Section 3; Thence (37) North along West line of Section 35, T. 29 S., R. 26 E. to the Northeast corner of the Southeast quarter of the Southeast quarter of the Southeast quarter of Section 34, T. 29 S., R. 26 E.; Thence (37a) Westerly along the' mid quarter line of the Southeast quarter of the Southeast quarter of Section 34, T. 29 S., R. 26 E. to a point on the north-south mid quarter Section line of the Southeast quarter of said Section; Thence (37b) Northerly along said line to the center of the Southeast quarter of Section 34, T. 29 S., R. 26 E.; Thence (37c) Westerly along the mid quarter Section line of the Southeast quarter of Section 34, T. 29 S., R. 26 E. to a point on the mid Section line of said Section; Thence (37d) Northerly along the mid Section line of Section 34, T. 29 S., R. 26 E. to the center of said Section; Thence (37e) Easterly along the mid Section line of said Section 34 to the east line of said section; Thence (38) Easterly along the North line of the South half of Section 35, T. 29 S., R. 26 E. to the East line of the West half of said Section 35; Thence (39) South along said East line of the West half of said section 35 to the North line of the South half of the Southeast quarter of said Section 35; Thence (40) East along said North line of the South half of the Southeast quarter of said Section 35 to the East line of the West half of the Southwest quarter of the Southeast quarter; Thence (41) South along said East line of the West half of the Southwest quarter of the Southeast quarter to the North line of Section 1, T. 30 S., R. 26 E.; Thence (42) East along said North line of Section 1 to the Northeast quarter corner of said Section 1; C:\WP.Fn.E~SC~EGALDES.WP (Revision date - June 18, 199~) City of Bakersfield - Domestic Water System Legal Description (continued) Page 5 Thence (43) North along the West line of Section 36 and 25, T. 29 S., R. 26 E. to the North line of the South half of the South half Of said Section 25: Thence (44) East along said North line of the South half of the South half of said Section 25 to the West line of the East half of the East half of said Section 25; Thence (45) South along said West line of the East half of 'the East haft of said Section 25 to the north line of said Section 36; Thence (46) East along said North line of said Section 36 and Section 31, T. 29 S., R. 27 E. to the Southwest quarter corner of Section 29, T. 29 S., R. 27 E.;' Thence (47) East along North right of way line 10.00 feet to a point on the West right of way line of Calloway Road (Co. Rd. No. 360); Thence (48) 3dong said West right of way line of Calloway Road, N.00° 14' 43" W., 1072.20 feet to a point on the Westerly prolongation of the South line of parcel 1 of Parcel Map 3582 recorded in Book 16 of Parcel Maps at Page 70 in the Office of the Kern County Recorder; Thence (49) S. 890 46' 49" E., 1322.58 feet to the Southeast corner of parcel 2 of said Parcel Map Thence (50) N.00° 14'01"E., 220.36 feet to the Southwest corner of Lot 22 of the Sales Map of Lands of Kern County Land Company filed August 20, 1890, in the Office of the Kern County Recorder; Thence (51) N.00° 12'49" E., 646.33 feet along West line of said lot 22; Thence (52) S.89° 48' 11" E., 661.06 feet to a point on the East line of said lot 22; Thence (53) N.00° 12~ 29" E., 711.23 feet to a point on the South right of way line of the AtChison Topeka and Santa Fe Railroad; Thence (54) S.89° 47' 39" E., along said South railroad right of waY line, 660.98 feet to a point on the North-South midsection line of said Section 29; Thence (55) N.00° 13' 20" E., along said midsection line, 2579.11 feet to the South right of way line of Rosedale Highway (State route VI KER 58); Thence (56) N.89° 08'14" W., along a line parallel with and 30.00 feet distant as measured at right angles from the North line of said Section 29, 1808.41 feet; C:\WP.~SC~LEGALDES.WP (Revision da~e. June 18, 1992) City of Bakersfield - Domestic Water System Legal Description (continued) Page 6 Thence (57) N.00° 29'05" E., 260.00 feet; Thence (58) N.89° 08'14" W., 150.00 feet to a point on the West line of parcel 1 of Parcel Map 6521 recorded in Book 30 of Parcel Maps at Page 6 in the Office of the Kern County Recorder; Thence (59) N.00° 29'05" E., along said West line, 1134.35 feet; Thence (60) N.89° 08'14" W., 720.77 feet to the West right of way line of CallOway Drive (Co. Rd.~ No. 522); Thence (61) on and along said West right of way the following courses: N.00° 29'05" E., 1307.35 feet; Thence (6la) N.00° 28'15" E., 2670.32 feet; Thence (6lb) N.00° 35'09" E., to a point on the Easterly right of way to the Friant Kern Canal; Thence (62) Northwesterly along said Easterly right of way to the NOrth line of Section 7, T. 29 S., R. 27 E.; Thence (63) East along said North line of Section 7 to the Northeast quarter corner of said Section 7; Thence (64) South along the East line of said Section 7 to the Intersection of West right of way of Calloway Drive and the Westerly prolongation of the North line of parcel 3 of Parcel Map No. 3249 as filed in Parcel Map Book 16 at Page 7 in the Office of the Kern County Recorder; Thence (65) S.88° 54'39" E. on and along said Northerly line and said Westerly prolongation thereof, a distance of 1351.50 feet to the West line of the East haft of the Southwest quarter of Section 8, T. 29 S., R. 27 E.; Thence (66) N.00° 36'12" E., on and along said West line, a distance of 629.75 feet to the South right of way of Norris Road; Thence (67) S.88° 54'40" E., on and along said South right of way line a distance of 360.69 feet to the West line of East 300 feet of the West half of the East haft of the Southwest quarter of said Section 8; Thence (68) South along said West line, to a point on thc South line of the North 145.00 feet of the Southwest quarter of said Section 8; C:~WP. FH,~MI S~GALDES.WP (Revision date - June 18, 1992) City of Bakersfield - Domestic Water'System Legal Description (continued) Page 7 Thence (69) East along said South line 300.00 feet to a point on the' East line of the West half of the East half of the Southwest quarter of said Section 8; Thence (70) North along said East line to the South line of the North 45.00 feet of the Southwest quarter of said Section 8, also being the South right of way line of Norris Road. · Thence (7~) S.88° 54'40" E. along said right of way line 660.69 feet to the East line of the Southwest quarter of said Section 8; Thence (72) North along said East line, 15.00 feet to a point on the South right of way line of Norris Road (Co. Rd. No. 30); Thence (73) S.88° 54'40" E., on and along said South right of way and the Easterly prolongation thereof, a distance of 2672.51 feet to the East right of way of Coffee Road (Co. Rd. No. 401); Thence (74) S.00° 32' 12" W., on and along said East right of way.of Coffee Road, a distance of 1298.27 feet to the North boundary of the Tract No. 3806, as filed in Map Book 27 at Page 42 in the Office of the Kern County Recorder; Thence (75) S.89°. 12'53" E., on and along said North line a distance of 25.00 feet to the East right of way of said Coffee Road (Co. Rd. No. 401); Thence (76) S.00° 32'12" W., on and along said East right of way a distance of 1320.64 feet; Thence (77)~continuing on and along said East right of way S.00° 37'57" W., 2645.30 feet to the North line of the South half of Section 16, T. 29 S., R. 27 E.; Thence (78) N.89° 09'10" W., a distance of 55.00 feet to the West quarter corner of said Section 16; Thence (79) S.00° 38'16" W., on and along West section line of said Section 16 a distance of 2644.43 feet to the Southwest quarter corner of said Section 16; Thence (80) S.89° 05'31" E., a distance of 30.00 feet-to a point on the North line of Section 21, T. 29 S., R. 27 E.; Thence (81) S.00° 25'39" on and along said East line 2660.94 feet to the East-West midsection line of said Section 21; Thence (82) N.89° 44'05" W., along said East-West line 30.00 feet to the West quarter corner of said Section 21; C:\WP-~ S C'~LEGALDE S.WP (Revision date. June 1~, 199~) City of Bakersfield - Domestic Water System Legal Description (continued) Page 8 Thence (83) along West line of said Section 21, S.00° 26' 12" W., 2549.22 feet, more or less, to the North right of way line of Rosedale Highway (State Route VI-KER-58) as shown on State Highway Map No. 7-1, filed in book 4, Pages 96 and 97 in the Office of the Kern County Surveyor; Thence (84) along said North right of way line of Rosedale Highway Easterly through said Section 21 and Section 22, T. 29 S., R. 27 E. to the West line of the East half of said Section 22; Thence (85) Northerly along the last named West line of Section 22 and Section 15, T. 29 S., R. 27 E. to the center of said Section 15; Thence (86) Easterly along the North line of the South half of said Section 15 and the North line of the South half of Section '14, T. 29 S., 1K. 27 E. to a point on the Northerly right of way line of the Atchison, Topeka and Santa Fe Railroad; Thence (87) Northeasterly along the last named railroad right of way to a point on the Westerly right of way line of State Route VI-KER-99; Thence (88) Southerly along the last named westerly right of Way line to a point on the said right of way described from the following: Commencing at the center of said Section 14; thence S.00° 21' 15" W. a distance of 26.30 feet to a point on the Westerly right of way line of State Route VI-KER-99, said point on the Easterly boundary line of the Fairhaven Water District; thence S. 23° 25'51" E. a distance of 360.75 feet; thence S.37°18'26" E. a distance of 183.65 feet to a point on a nontangent curve concave to the Northeast which bears S.44° 42'45" W. a radial distance of 1085 feet from the center of said curve; thence Southerly along the last named curve through a central angle of 18° 00'49" and arc distance of 341.12 feet; Thence (89) departing said Westerly right of way line along a direct line to the Northeast corner of the land described in the deed to the State of California, recorded October 1, 1964, in Book 3771, page 374 in the Office of the Kern County Recorder; Thence (90) S.80° 57'12" E. a distance of 463.98 feet; Thence (91) S.56° 05'11" E. a distance of 71.99 feet; Thence (92) S. 14° 39'38" E. a distance of 75.31 feet; C :\WP. ~ SC'~LEGALDE S,WP (Revision date - June 18, 1992) City of Bakersfield - Domestic Water System Legal Description (continued) Page 9 Thence (93) Southerly along a direct line to the Northerly terminus of Course No. 2 of parcel 1 of that certain Grant Deed from R. S. Haberkern t° Reed Properties recorded October 9, 1979, in Official Records Book 5235 at page 137 in the Office of the Kern County Recorder; Thence (94) S.04° 51'31" W. a distance of 48.61 feet; Thence (95) S.49° 51'15" W. a distance of 195.44 feet; Thence (96) S.52° 41'03" W. a distance of 46.80 feet; Thence (97) N.43° 37'02" W. a distance of 218.37 feet to a point on a nontangent curve concave to the Southeast which bears N.79° 42'02" W. a radial distance of 115 feet from the center of said curve; Thence (98) Southerly along the last named curve through a central 12027'20" an arc length of 25 feet; Thence (99) S.02° 09'24" E. a distance of 44.62 feet; Thence (100) N.89° 44'32" W. a distance of 233.95 feet more or less to a point on the Westerly right of way line of State Route VI-KER-99; Thence (101) Southerly along the last named Westerly right of way line to a point on the Northerly right of way line of State Route VI-KER-58 (Rosedale Highway); Thence (102) Easterly along the last named Northerly right of way line and the Northerly right of way line of State Route VI-KER-178 (24th Street) to a point on the South levee of the Kern River; Thence (103) Southwesterly along the last named South levee to a point on the West line of Section 26, T. 29 S., R. 27 E.; Thence (104) South along said West line of Sections 26 and 35 to the Northeast quarter corner of Section 2~ Township 30 South, Range 27 East, M.D.B. & M., said point also being on the North right of way line of Stockdale Highway to the Point of Beginning. EXCEPTING THEREFROM any portion lying within the following described parcel: Beginning at the intersection of the centerline of East line of Section 4, T. 30 S., R. 27 E., M.D.B. & M., with the South right of .way line of Stockdale HighwaY; C :\¥~P- ~ S C'~LEGALDES.WP (Revision date - june 18, 1992) City of Bakersfield - Domestic Water System Legal Description (continued) Page 10 Thence (1) South along said East line of said Section 4 to a point on the existing corporate boundary line of the City of Bakersfield; Thence (2) Westerly, Northerly, Easterly and Northeasterly along the various courses of said Corporate Boundary to a point on the South right of way line of Stockdale Highway; Thence (3) East along said South right of way line to the Point of Beginning. C:\WP. FII.E'~ SC'~LEG~ES.WP (Revision date. June 18, 1992) City of Bakersfield - Domestic Water System 'Legal Description (continued) Page 11 CHRONOLOGY OF SERVICE AREA ANNEXATIONS January 30, 1980 Service area established Resolution no. 80-1 WB August 29, 1984 Establishment to Fairhaven serVice area Resolution no. 74-84 August 29, 1984 Annexing of area within Fairhaven near Golden State and Pierce Road Resolution no. 75-84 November 23, 1985 Section 14.04.011 - Relative to establishment of Ashe Water Service Area Ordinance No. 2997 New Series December 11, 1985 Annexing of portions of Sec. 21 & 22, T.30S., R.27E. Resolution no. 179-85 August 6, 1986 Annexing of Laborde area Resolution no. 123-86 'November 19, 1986 Annexing of portions of Sec. 27 & 28, T.29S., R.27E. Resolution no. 172-86 August 30, 1989 Various service area additions Resolution no. 162-89 April 24, 1991 Annexing of portions of Sec. 27 &34, T.30S., R.27E. Ridgeview H. S. Resolution no. 59-91 C:\WP-~S~GALDES.WP (Revision date - June 18, 1992) B A K E R S F I E L D Mark Salvaggio, Chair Alan Tandy, City Manager Ken Peterson, Vice-Chair Staff: Paul Dow Connie Brunni AGENDA SUMMARY REPORT WATER RESOURCES COMMITTEE Wednesday, October 7, 1992 Immediately Following the 5:15 p.m. Water Board Meeting Water Resources Conference Room 1. Proposed Amendments to the Bakersfield Municipal Code relating to Ashe Water Service Area. (Pat Hauptman) The proposed amendments to the Bakersfield Municipal Code relating to Ashe Water Service Area were diSCussed. The propoSed amendments (Sections 14.04.030, 14.04.040 and 14.04'.120 Subsection C) clarify the conditions for water service applications and require the payment of availability fees or the signing of a standard contract guaranteeing payment prior to City issuance of a written committment for service. The City Attorney's Office will notify the Building Industry Association (BIA) for their review and input. This item is tentatively SCheduled to be under'New Business at the November 4, 1992 Council Meeting. 2. The next meeting is tentatively scheduled for November 24, 1992. B A K E R S F I E L D Mark Salvaggio, Chair Ken Peterson, Vice Chair Conni Brunni Staff: Paul Dow AGENDA WATER RESOURCES COMMITTEE Wednesday, October 7, 1992 Immediately Following the 5:15 p.m. Water Board Meeting Water Resources Conference Room 1. Proposed Amendments to the Bakersfield Municipal Code relating to Ashe Water Service Area 2. Set Next Meeting TO: VICE-MAYOR KEVIN McDERMOTT FROM: LAWRENCE M. LUNARDINI, CITY ATTORNEY~ SUBJECT: AMENDMENTS TOTHE BAKERSFIELD~ICIPAL CODE RELATING TO ASHE WATER SERVICE AREA. Please refer the following proposed ordinance to whichever committee you deem appropriate: AMENDMENTS TO SECTIONS 14.04.030, 14.04.040 AND ADDING SECTION 14.04.120 TO BMC RELATING TO ASHE WATER SERVICE AREA. Background: Subsection A.1. of Section 14.04.030 has been amended to require that an application for service be made or service may be denied or discontinued. Section 14.04.040 has been amended to require a contract for service be signed or availability fees be paid prior to receiving water service. Subsection C. to Section 14.04.120 is added to the Bakersfield Municipal Code specifically requiring applicants for stand-by service to pay the required fee or sign a contract guaranteeing payment prior to City issuance of a written commitment to service water to any area. No final map allowing construction shall be approved prior to payment of proper fees for water service. ADD/meg ORD-REF\ ASHEWATR.VM Attachment cc: Paul Dow, Water and Sanitation Manager Gene Bogart, Water Resources Director Florn Core, Assistant Director, Water Resources Jack Hardisty, Planning Director ' DRAFT ORDINANCE NO. AN ORDINANCE AMENDING SUBSECTION A.1. OF SECTION 14.04.0'30, SECTION 14.04.040 AND ADDING SUBSECTION C. TO SECTION 14 . 04 . 120 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO ASHE WATER SERVICE AREA. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Subsection A.1. of Section 14.04'030 of the Bakersfield Municipal Code is hereby amended to read as ~olloWs: 14.04.030 Application for service. A. Application for service. 1. All persons, corporations, partnerships, agencies or entities of every type or kind shall make an application for water service on form provided by the 'City. Failure to submit an application under this provision shall result in service being halted or discontinued until such apPlication is properly submitted. SECTION 2. Section 14.04.040 of the Bakersfield Municipal Code is hereby amended to read' as follows: 14.04.040 Contracts. A contract, as a condition precedent to receiving service from the City, will be required under any of the following circumstances: A. Where required 'by provisions in a filed rate schedule; B. When a main extension to be made under the provisions of Sections 14.04.140 through 14.04.230 requires an advance for construction; C. For temporary service supplied under the provisions of Section 14'.04.130; D. For standby service or service requiring the payment of an availability fee; E. For any service to be furnished at rates or under conditions other than the rates and conditions set by the City; F. Under any circumstances where a contract would benefit the City and is directed to be prepared by the Director of Water Resources. SECTION 3. Subsection C. is hereby added to Section 14.04.120 of the Bakersfield Municipal Code to read as follows: 14.04.120 Rates and charges. C. Ail applicants for stand-by service, or service where availability fees are to be paid, shall pay the required fee, or sign a contract guaranteeing payment, prior to City issuance of a written commitment to service water to any area.. No final map allowing construction 'shall be given approval prior to payment of proper fees for Water service. SECTION 4. This Ordinance shall be posted in accordance with the Bakersfield Municipal Code provisions and shall become effective thirty (30) days from and after the date of its passage. o0o I ~RRRy CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED CLARENCEE. MEDDERS MAYOR of the City of Bakersfield APPROVED as to form: LAWRENCE LUNARDINI CITY ATTORNEY of the City of Bakersfield ADD/meg WATER\ ASHE-SER.O-5 6/15/92. - 3 - 14.04.030 Application for service, service shall be jointly and severally liable for 1. Application for Service. payment of bills and shah be billed by means of 1. All persons, developers, corporations, single periodic bills. pamerships, agencies or entities of every type or k/nd C. Change in Customer's Equipment. Customers shall make an application for water service on form making any material change in the size, character provided by the City. Failure to submit an or extent of the utilizlng equipment or operations application under this provision shallresult in service for which the city is supplying water service shall being halted or discontinued untilsuch application is immediately give the city writt6n notice of the properly submitted,~_..~'~t' -rr'--'- ~v'~t; .... r ............. ,.--~. w. ,~;~ extent and nature of the change. .... ~ ....,~ ........ o.-, on a form provided by the D. Use of Water Without Application for Service city, an application which will set forth: Having Been Made. Any person or firm taking a. Date and place of application; possession of and using water without having made b. Location of premises to be served; application to the city for service shah be held c. Date applicant will be ready for service; liable for the full amount of the service rendered. d. Whether the premises have been (Prior Code§ 1.46.030). heretofore supplied with water by the city; e. Purpose for which service is to be used; - f. Address to which bills are to be mailed or delivered; g. Whether applicant is owner or tenant of, or agent for, the premises; h. Rate schedule desired where optional rates are in effect; i. Such other' information as the city may reasonably require. 2. The application is merely a written request for service and does not bind the applicant to take service for a period of time longer than that upon which the rates and minimum charge of the applicable rate schedule are based; neither does it bind the city to' serve, except under reasonable conditions. B. Individual Liability for'Joint Service. Two or more parties who join in one application for 14.04.040 Contracts A contract, as 'a condition precedent to receiving service from the city, will be required only under any of the following circumstances: A. Where required by provisions in a filed rate schedule; B. When a main extension to be made under the provisions of Sections 14.04.140 through 14.04.230 requires an advance for construction; C. For temporary service supplied under the provisions of Section 14.04.130; D. For standby service ex~t or service requiring the payment o fan availability fee; E. For any service to be furnished at rates or under conditions other than the rates set by the · city. (Prior code § 1.46.040). F. Under any circumstances where a contract would benefit the City and is directed to be prepared by the Director of Water Resources. 14.04.120 Rates and charges. , A. Effective Rates. A complete schedule of all effective rates authorized to be charged to water service shall be kept in the city's local offices where they will be available for public inspection. B. Availability Rates and Charges. The city water board, with concurrence of the city council, shall establish availability (standby) fees and charges for water service facilities for all areas except those described in Exhibit C-1 of the City Agreement No. 76-36, which fees and charges are hereby declared to be necessary to compensate the city for the expense incurred in furnishing source, storage, and water distribution facilities, and related capital project expenses, including but not limited to costs of acquisition and financing and necessary costs of operation, maintenance, replacement, improvement and extension of the water system. (Ord. 2660 § 3, 1981: prior code § 1.46.120). C. All applicants for stand-by service, or service where availability fees are to be paid, shall pay the required fee, or sign a contract guaranteeing payment, prior to City issuance of a written commitment to service water to any area. No final map allowing construction shall be given approval prior to payment of proper fees for water service. 14.04.130 Temporary service. "Temporary service" is defined to refer to service for use considered by the city to non-permanent or of limited duration, or to be a Use by a venture or enterprise of speculative character or of questionable permanency.